Bigger solar for the home is better: here's why

After the first one to two kilowatts, the revenue from extra solar capacity steeply declines. But once you take into account the other element of the equation – costs – going bigger starts to make complete sense.

I’ve periodically puzzled over the fact that the size of solar systems installed in Australia has steadily increased over the years. But I’ve now realised that it makes complete financial sense – many households will be several hundred dollars better off per year choosing a 5 kilowatt system instead of the pre-2010 standard of a 1.5kW system.

The reason for my earlier puzzlement was that systems have significantly increased in size while at the same time the financial reward for electricity exported to the grid has plummeted with the demise of government mandated feed-in tariffs.

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